Early 2017 Should See A Minimum of $3,600 for Gold & $100 for Silver! Here’s Why

Since the start of June, typically the worst month for precious metals when looking at seasonal charts, gold is up $75 or 6% and silver is up over $2 or 11% while many of the mining stocks that we track are up 30% or more in the past 3 weeks. Prices normally start to gain momentum after June and close the year very strongly so, while a pullback tomorrow would not be surprising, I believe the trend will be towards higher prices for the remainder of the year.

The above comments are edited excerpts from an article* by Jason Hamlin (goldstockbull.com) entitled Gold And Silver Explode Higher! Is it Finally Time to Buy?

The following article is presented courtesy of Lorimer Wilson, editor ofwww.munKNEE.com (Your Key to Making Money!), www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and the FREEMarket Intelligence Report newsletter (register here; sample here) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.

Hamlin goes on to say in further edited excerpts:

Why Is This Upsurge In PMs Happening Now?

1. The increasing instability in Iraq, as the Sunni Jihadist group, ISIS, has taken over much of Western and Northern Iraq, plus a large portion of Eastern Syria.

2. The Federal Reserve recently said that they are committed to accommodative measures and low interest rates well into the future. These comments have driven the dollar down and boosted demand for precious metals. With China, Russia, India, Brazil and countries around the world abandoning the dollar in international trade, dollar weakness is likely here to stay…

3. Adding fuel to the fire, many technical traders and gold shorts were forced to cover positions this week on the advance in precious metals. These large and leveraged paper positions tend to exacerbate the price movements in both directions. If we are indeed finally witnessing the end of the 2-year correction in precious metals, the upside potential is absolutely staggering.

The past two advances more than doubled in their magnitude, as did the past two declines. If the is trend holds true this time around, we are looking at an advance of at least $2,400 from the cycle low of $1,200, which gives us the minimum price target of $3,600 for gold! These cycles last 24 to 36 months, so we can expect this price target at some point around the start of 2017. Applying this analysis for silver forecasts a minimum price target of $100 in the same time frame.

Conclusion

If this price target comes to fruition, anyone picking up precious metals at current prices is going to become very wealthy and, while we advocate holding physical bullion in your possession, we expect quality mining stocks to offer leverage of 2X to 4X the advance in the underlying metal. As such, if gold triples over the next few years from $1,200 to $3,600, a solid mining company should see their share price go up 6X to 12X and, if you are able to pick successful junior mining stocks before the market piles on board, the gains will be orders of magnitude higher!

[The above being said,] as bullish as I am on precious metals going forward, it is important to realize that manipulation is still occurring and there are banks with access to nearly unlimited funds and extreme leverage via futures markets that can slam the price down at will. They are finally being exposed and even fined for the manipulation, putting an end the cries of “conspiracy theory” but I am not convinced that they are out of the market quite yet. [As such,]…I think it is wise to scale into positions slowly at this juncture and keep some cash on the sidelines. Going forward, I believe that the all-in cost of production for gold and silver will continue to act as support on any take down attempt and the downside risk of such a drop is minuscule compared to the upside potential detailed above.

Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.

The charts below make it crystal clear that we are on the verge of a major bull market advance across the PM sector. While these charts are for the Market Vectors Junior Gold Miners ETF, what happens to the GDXJ has major implications for the whole sector, for the simple reason that it is not going up without the entire sector going up too. Read More »

I am 100% confident that 1) precious metals will bottom this year and resume a new leg to the upside, 2) the extreme emotions right now regarding gold and silver are typical at major turning points and 3) all the underlying fundamental, cyclical and technical conditions for a new bull market in gold and silver are in place. Here’s an update on the latest action in gold, silver, platinum and palladium Read More »

Before this great financial crisis ever comes to a close, you’ll see the Federal Reserve copy Europe and also implement negative deposit rates to try and get commercial banks to lend money into the economy. I have absolutely no doubt about it – and it will have three chief consequences for the markets. Let me explain. Read More »

Which gold/silver mining companies own quality undeveloped gold and silver deposits in safe stable countries – and are extremely well managed? Such companies offer exceptional value in that they provide the best exposure to a rising precious metals price environment. Below are a number of things to look for when considering an investment in such companies. Read More »

It’s not crazy to think that gold stocks could easily double from their current levels if you realize the extreme condition the gold-stocks-to-gold ratio is in – and if you know your market history. Let me explain. Words: 336; Charts: 1 Read More »

Stocks are pulling back in preparation for one final mind-blowing surge to top off this five-year bull market. Gold, on the other hand, looks like it is setting up for a final bear market capitulation phase where every gold bug finally throws up their hands in disgust and jumps over to the stock market right as it’s putting in a final bubble top. For those…that are sitting in cash, this final capitulation is going to represent one of the greatest buying opportunities of this generation. Read More »

How much capital has the management team taken out of their pockets and put directly into the company? What amount of shares of a company are owned by funds or big financial institutions. The extent of such ‘skin in the game’ and ‘smart money’ involvement is crucial in deciding whether or not to invest in a particular company. Here’s why. Read More »

90% of the management teams you interview will be unable to present a reasoned argument for pursuing their project and to justify the approach they are using so let’s examine Rick Rule’s 11 “must ask” questions, one by one. Read More »

DISCLOSURE: It is our intent that all posts on this site be in accordance with the requirements, restrictions and terms of the Copyright Law of the United States and all other copyright treaties to which the United States is party and more specifically of the Digital Millennium Copyright Act - Blogger . As such, all posts on this website have been screened at Library of Congress Catalog as to their eligibility for posting. Should any post be deemed to be inadvertently in contravention of these Acts' terms please advise with substantiation of such apparent contravention (i.e. registration number) and the article in question will be immediately deleted from the site. Also, visit U.S. Code 17-107 Limitations on Exclusive Rights - Fair Use

FAIR USE NOTICE: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of financial, economic and investment issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

COPYRIGHT & DISCLAIMER: Lorimer Wilson is not a registered advisor and does not give investment advice per se. The articles to be found on the site are expressions of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. Please consult with a qualified investment advisor who is licensed by appropriate regulatory agencies in your legal jurisdiction before making any investment decisions, and barring that, we encourage you confirm the facts on your own before making important investment commitments. The information on this site was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that while Wilson may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website they do not intend to disclose the extent of any current holdings or future transactions with respect to any particular security and, as such, you should consider this before investing in any security based upon statements and information contained in any report, post, comment or recommendation you read on the site.